Skip to main content

30. Consolidated cash flow analysis

a) Reconciliation of profit before tax to cash inflows from continuing operations

US$ million 2008 2007
Profit before tax – continuing operations 8,571 8,821
Depreciation and amortisation 1,509 1,398
Share-based payment charges 155 138
Special items and remeasurements of subsidiaries and joint ventures 71 (243)
Net finance costs before remeasurements 452 137
Operating fair value gains before special items and remeasurements (1) (12)
Share of net income from associates (1,113) (197)
Provisions 46 77
Increase in inventories (999) (352)
Decrease/(increase) in operating receivables 80 (389)
Increase in operating payables 896 53
Other adjustments (88) (56)
Cash inflows from continuing operations 9,579 9,375

b) Reconciliation to the balance sheet

  Cash and cash equivalents(1) Short term borrowings Medium and long term borrowings
US$ million 2008 2007 2008 2007 2008 2007
Balance sheet 2,771 3,129 (6,784) (5,895) (7,211) (2,404)
Balance sheet – disposal groups(2) 8 (31)
Bank overdrafts (35) (17) 35 17
Bank overdrafts – disposal groups(2) (38)
Net debt classifications 2,744 3,074 (6,749) (5,909) (7,211) (2,404)
(1)
'Short term borrowings' on the balance sheet include overdrafts which are included within cash and cash equivalents in determining net debt.
(2)
Disposal group balances are shown as 'Assets classified as held for sale' and 'Liabilities directly associated with assets classified as held for sale' on the balance sheet.

c) Movement in net debt

US$ million Cash
and cash
equivalents(1)
Debt due
within
one year
Debt due
after
investments(2)
Current
financial asset
investments(2)
Net debt
excluding
Hedges
Hedges(3) Total net debt
including
hedges
Balance at 1 January 2007 2,980 (2,076) (4,228) (3,324) 193 (3,131)
Cash flow(4) 34 (2,618) (1,334) (3,918) (3,918)
Acquisition, disposal and demerger of businesses 468 1,858 2,326 2,326
Reclassifications (1,394) 1,420 26 26
Movement in fair value (7) 10 3 195 198
Other non-cash movements 18 18 18
Currency movements 60 (282) (148) (370) (370)
Balance at 1 January 2008 3,074 (5,909) (2,404) (5,239) 388 (4,851)
Cash flow(4) (143) (1,432) (5,181) 210 (6,546) (380) (6,926)
Acquisition of businesses (209) (461) (670) (670)
Reclassifications 190 (190)
Movement in fair value (11) (176) (187) (305) (492)
Other non-cash movements (15) (15) (15)
Currency movements (187) 622 1,216 (37) 1,614 1,614
Balance at 31 December 2008 2,744 (6,749) (7,211) 173 (11,043) (297) (11,340)
(1)
The Group operates in certain countries (principally South Africa and Venezuela) where the existence of exchange controls may restrict the use of certain cash balances. These restrictions are not expected to have any material effect on the Group's ability to meet ongoing obligations.
(2)
Relates to amounts invested in unlisted preference shares (guaranteed by Nedbank Limited and Nedbank Group Limited) pending completion of the anticipated disposal of the Group's 50% interest in the Booysendal joint venture.
(3)
Derivative instruments that provide an economic hedge of assets and liabilities in net debt are included above to reflect the true net debt position of the Group at the year end. These consist of net current derivative liabilities of $437 million (2007: $396 million net assets) and net non-current derivative assets of $140 million (2007: $8 million net liabilities) and are classified within other financial liabilities and other financial assets respectively on the balance sheet.
(4)
Cash flow on debt due within one year includes nil relating to discontinued operations (2007: repayments of $162 million). Similarly, cash flow on debt due after one year includes nil relating to discontinued operations (2007: receipts of $993 million). Cash flow on debt due after one year includes repayment of finance leases of $3 million (2007: nil) which is included within 'Other financing activities' in the Consolidated cash flow statement.

Back to the top